All Forum Posts by: Jay Hinrichs

@Rick H.

Rick don't tell anyone but when I had my storage facility I never sent the money to the state I could never figure out where to send it so it just stayed in our account waiting for our dead beat tenant to claim. it.

I quite liked the storage units they were on the Columbia river and I rented mainly to those that lived on house boats. I then condo ized them and sold them off to my tenants. storage condo's are not new concept but rare and they can be good if you get the right spot.

@Mike D'Arrigo

@Account Closed

peace has been established.. Bob I will be over in Hono next month we stay at the Nauru .. I have a bizz partner there in hono and we build houses together here in PDX.. They have done extremely well with HI real estate they own a few shopping malls and a lot of industrial tilt ups.

Also US pacific builders was a JV partner of mine back in the day we did a 200 acre development together in PDX.. They then I think lit off for Vietnam

@Aaron Mazzrillo

Aaron also I think you must have the highest ratio of votes to post on the whole darn site.

@Account Closed

@Aaron Mazzrillo

I wrote an E book on how I lost 5 million from 08 to 2010.. its a short read and I am not selling it for very much... I want to know where Aaron caught that fish. Stu do you fish here in Oregon?

I have 10 or 11 REO's ( the last of my 200 or so I owned) and I just want to blow them out.. I will take 20% cash down YOU pay closing cost title insurance etc. And I will finance them for 5 years at ZERO % interest.. At the end of 5 years you have a BP Dream a free and clear asset.. the terms will allow you small positive and maybe small negative..

E mail me if you would like my list of properties

[email protected]

@Sean Kremer

its all perspective Sean,,,, even here in lowly Portland Oregon you pay 200k for a house that rents for 1200... And you love it.

What our missing is depending on the bust boom cycle.. CA investors and to the same extent Seattle and PDX investors they can make more money in a year or 2 on appreciation than you pay for 5 houses in the mid west. At the end of the day cash flow in the mid west is a JOB with the goal to get your houses paid off and then when they are paid off your golden and retired and smiling... Where CA investors want it big and now.. so buy now sell in 3 years make 200 to 500k on one property purchase that may have been 1k a month negative. ( which is very common and acceptable) so your in the house 36k negative but you made 200k or more in capital gains. Which is the better deal make 150 a month on a rental in the mid west that never goes anywhere in value or buy CA :)

I went through this in 1991.. I had my house in Palo Alto ( one of the most expensive neighborhoods in the entire US per sq ft. ( other than Manhattan )

And for me to keep my house would have been 500 a month negative.. I could have done it easily.. But we had not had big run ups and I am thinking hey the market really can't go much higher ( I owed 350k on it at the time) 900 sq ft built in the 50's 3 and 1 type of home you would routinely buy for 20 to 50k maybe... So I sold it.. Moved to the Napa valley.. Well fast forward to today.. That house just sold for are you sitting down 1.565.000.00 and the rents within 3 years would have been even cash flow then in the 2000'

s it would have been positive 1000 or more. And I would be cashing a check today for 1.4 mil.. but no I did not think the real estate In Palo Alto could ever crack 500k for a 900 sq ft 3 and 1..

That is the CA perspective and unless you have lived it its hard to fathom I know.

@Account Closed

Interesting concept of land that was never on the tax rolls.. I have never run into that. from my experience the land is either privately owned and tax'd or owned by a non profit and not taxed.. or owned by state or federal agencies.. The no mans land out west here is Usually BLM lands.

@Ned Carey

agreed if you have closed a lot of properties that have had escrow impounds I would definitely check.. In Oregon the unclaimed department is like in the Department of Transportation some place you would never check. they count on taking this money after 5 years its free to them and easy to manage.. Someone just mails it in to them and they put it in the bank and probably make interest on it.

@Mike D'Arrigo

Mike Cash flow in California is simple to get.. .Just pay cash and you have cash flow.. Just like the Chinese are doing in droves...

I always kind of laughed at this whole cash flow discussion.. Cash flow is a function of down payment.. Now in the mid west were cost to rent is skewed towards the investor its possible to get cash flow with no money down. Hell in the day when I was funding 50 to 60 TK properties a month EACH and every one of them the borrower was taking cash out.. so these were cash flowing and getting CASH out at close..

Where the mid west market is a challenge is most West coast investors don't quite understand the socio demographics and that rent collection is directly related to price.. You can buy 30-k house in KC or INDY and rent collection will be tough. YOu can buy a 100k house in Indy or KC and your getting like you said a median priced home with good chance of rent collection. Its the very low end Ghetto properties that people buy and think will do well that create economic havoc on out of state investors. I have written this hundreds of times but in my opinion only LOCALS can handle trashflow low end rentals. You need to be on the tenants and you are going to have tons of turn over.. those properties do not do well as TK investments.

I have looked at your inventory and your in a nice price point.. And quality of home from what I know of Indy I probably did 250 loans in INdy in my day. And as we discussed on the phone I know others that deal in lower class than you do. there was one of those companies that got lampooned on this site a month or so ago.

@Ned Carey

I had one personally were there were on a loan we had 9k in escrow funds in our loan TAX's and some prepaids.. I did not realize this when I sold then sometime down the track ( I had a PI trying to chase down one of my clients) and he was so good I had him do some work for me in the course of chasing one of my defaulted borrowers he checked the state of Oregon and said I had unclaimed money.. I checked and sure enough 9k been sitting there about 3 years.. In 5 years if it goes unclaimed it Escheats to the state.

Same with overages in property tax sales.